Garbutt & Anor v Edwards & Anor

Garbutt & Anor v Edwards & Anor

A solicitor’s failure to provide a costs estimate as required by the Code does not render the contract of retainer unenforceable nor automatically discharge or reduce the paying party’s liability for costs. The appropriate remedy for such a failure lies in the discretion of the costs judge during assessment, who may consider whether the absence of an estimate had a calculable and material effect on the costs claimed. Disciplinary sanctions for solicitors are available through the Law Society, not through automatic reduction or disallowance of costs in inter partes assessments.

Parties
Claimants/respondents: John Mallory Garbutt & Another; Defendants/appellants: Andrew Edwards & Another
Jurisdiction
England and Wales
Judgment Date
27 October 2005
Procedural Posture
Civil Appeal / Appeal From Order of HHJ O’brien Dismissing Appeal Against Summary Assessment of Costs
Outcome
Appeal dismissed
Legal Topics
Costs Assessment, Solicitors’ Duties, Indemnity Principle, Client Care, Statutory Interpretation
Civil Procedure Legal Profession Regulation Costs Assessment Solicitors’ Duties Indemnity Principle Client Care Statutory Interpretation

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Parties

John Mallory Garbutt & Another

Claimants/respondents

Andrew Edwards & Another

Defendants/appellants

Procedural Posture

Civil Appeal / Appeal From Order of HHJ O’brien Dismissing Appeal Against Summary Assessment of Costs

Legal Issues

  1. 1 Does a solicitor’s failure to provide a costs estimate to the client, as required by the Solicitors’ Costs Information and Client Care Code, render the contract of retainer unenforceable and discharge or reduce the paying party’s liability for costs?
  2. 2 Should the court reduce or disallow costs on assessment where no estimate was provided?

Ratio Decidendi

A solicitor’s failure to provide a costs estimate as required by the Code does not render the contract of retainer unenforceable nor automatically discharge or reduce the paying party’s liability for costs. The appropriate remedy for such a failure lies in the discretion of the costs judge during assessment, who may consider whether the absence of an estimate had a calculable and material effect on the costs claimed. Disciplinary sanctions for solicitors are available through the Law Society, not through automatic reduction or disallowance of costs in inter partes assessments.

Court Disposition

Appeal dismissed

Orders

  • The order of HHJ O’Brien is upheld; no reduction or disallowance of costs for failure to provide an estimate.